B Dallum CI Accomplishments & Projects- hea

BARRY DALLUMLEAN 6 SIGMA ACCOMPLISHMENTS & PROJECTS

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Hospital Noise at Night Reduction – DMAICo Identified relationship between customer satisfaction and noise levelso Identified key noise sources and implemented improvements to reduce themo Set control plan in place to minimize recurrence of noise & sourceso Green Belt mentored project

RN Turnover Reduction – DMAICo Surveyed employees to identify root causeso Formed employee team & brainstormed improvementso Researched & utilized best practices to retain new employeeso Implemented stay interviews, new employee network, improved new hire screening tools,

invented and commercialized an improved measurement system. Reductions now underway.o Green Belt mentored project

In-patient Length of Stay Reduction – LEAN/DMAICo Focused on service line with highest mean length of stay – neurologyo Identified variation in lengths of stay as a function of provider – protocols & practiceso Project ended when longest length of stay provider resigned.

Inconsistent Emergency Department to Clinic Appointment Scheduling- DMAICo Process mapping showed inconsistent methods & training of ED discharge personnelo Standard work implemented to both insure appointments are made and explanation of need to

reduce no-shows, post improve measurements underway.

Optimal Care for Diabetes Patients - DMAICo Primary care clinics not meeting state goals for addressing primary contributors to diabeteso Process mapping showed inadequate and inconsistent rooming processo All value stream personnel at pilot site trained in new process check-list with in-process

measurements implemented resulting in clinics exceeding state score goals.o Pilot now being expanded to all clinicso Green Belt mentored project

Increasing Payments from Medicare - DMAICo Implementation of a new invoicing system resulted in significant lost charges, valued at over

$1MM per year revenue loss.o Process mapping with fishbone tool identified missing charge entry procedures at numerous

clinics and missing claim rejection rework steps.o Green Belt mentored project

Home Health Visit Admissions Cycle Time Reduction - LEANo Mean time to home visit from time of clinic visit exceeded a 10 day state standard by 5 dayso Value stream mapping identified batch queuing & extended provider times as largest wait

time sources.o Single piece flow combined with standard physician order work in clinics reduced the mean

time to 10 days, further improvements implementation underway.o Green Belt mentored project


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Total Joints Bundled Care Complications Reduction - DMAICo Length of in-patient stays and readmissions rates for knee & hip joints higher than Geisinger

benchmarko Investigation revealed inadequate or incomplete patient and family training in pre & post

therapies & rehabilitation.o Improved education and therapy resulted in $900M cost savings.o Green Belt mentored project.

Outpatients in Inpatient Beds - DMAICo Data analysis reveals 3 key medical practice areas creating 80%+ defecto Standard work & process implementation in largest area resulted in 30% defect reductiono $90M per year cost reduction with a revenue improvement due to increased capacityo Green Belt mentored project

Improving Productivity in Neurosurgery Clinic - LEANo Primary constraint to increased throughput shown to be downstreamo Nurses’ & administrative assistants’spaghetti diagramming showed excess motion areas.o Improvements allowed a small reduction of man-hours while cross-training enabled excess

personnel usage in other clinics to help with demand surge as needed.o Green Belt mentored project

Decrease the Variation in Staff to Patient Ratio at Detroit Lakes LTC - LEAN/DMAIC

o Double sided defect concerning enough staff for safety but not too much staff for costo Patient acuity & census to staffing ratio algorithm formulated with standard work

implemented for adjusting daily staffing.o Green Belt mentored project

Decrease use of Dietary Paper Products – DMAICo Defect is disposable product used in place of recycled producto Data analysis revealed wrong product usually used for inpatients room deliveryo Standard work implemented resulting in almost elimination of defecto Green Belt mentored project

Increasing Physical Therapy Appointment Access – LEAN/DMAIC

o The time between patient therapy appointment (receipt of order) and their practitioner visit (appt.) exceeded the 2 business days (48 hours) goal. The mean was 3.3 business days. This results in higher staffing costs, potential patient satisfaction issues, & potential lost revenue.

o 2 processes for 2 inputs mapped & improved: nursing home patients, outpatientso Cycle time reduced to 1.8 days mean.o Productivity and Margin have remained unchanged.o Green Belt mentored project


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Annual Education Development - LEANo Mandatory regulatory subject training formulation occurs longer than 10 weeks resulting in

delayed training completion or non-completion or a shortened time for employees to gain a quality understanding of the subject matter.

o No formal process currently exists in the Education Department to ensure required education is delivered by a pre-determined date. The opportunity exists to increase participation and completion rate for required education, as well as improve the employee experience, if a process is created and implemented.

o Notification & follow-up process formulated with control plan implemented resulting in a less than 10 week delivery time, average being 5 weeks.

o Green Belt mentored project Patient Hypertension Score Improvement - DMAIC

o Department report cards were not impacting the balanced scorecard measures. Quality metrics were not driven down to the front line and process improvement was not owned by managers. Mandated semi-annual report out to the quality council had very little engagement.

o The quality council was restructured along with implementation of standardized agendas & action plan formats. Department scorecards were re-designed to tie directly to the BSC. A control plan was implemented to hardwire process improvement into department reporting.

o Data showed continuous improvement, meeting state of Minnesota goals for patient hypertension scores and associated blood pressure readings.

o Green Belt mentored project

Laboratory Charge Capture - DMAICo Estimated $4.2MM annualized lost upon conversion to new invoicing software system.o Process mapping showed select pathology charges associated with specialty clinic outpatient

procedures were not being entered into proper windows and some windows not activated.o Green Belt mentored project

ICC (Intermediate Care Unit) Redesign – LEAN/DMAICo Double bound defect = low acuity patients in high acuity beds (cost) and high acuity patients

in low acuity beds (safety)o Competing metric of reduce cycle times in EDo Decision tree & standard work communication hand-off formulated with flow coordinator

tasking.o Control plan implemented, audits show $70M/year staffing cost reduction along with

unquantified safety improvement.o Green Belt mentored project

Multi-Specialty & Primary Care Clinic Patient Registration Redesign – LEAN/DMAICo Patient wait times varied as a function of staffing, demand surge & scheduling


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o Goal to decrease wait times to 3 minutes or less per VoC surveys compared to upwards of 20 minutes

o Added surge station, cross-trained schedulers, initiated visual queuing triggero Attained < 5 minute wait times, introduction of new software system with additional

windows complicated goal attainment.o Green Belt mentored project

Perfect (Customer) Order (Fulfillment) Mega-Project 2 Black Belts, 1 Master Black Belt mentored on several projects.Reduce short ships, late ships, incorrect invoicing, increase accurate ships.Kaizen Events to reduce cycle time on order fulfillment process and on warehouse product

inventory accounting process.

o Implemented the Perfect Warehouse for package goods. – DMAIC/LEAN Literature searched to identify benchmark. Products pick frequency warehouse setup along with inventory optimization

& 5S. Material accounting processes updated & bar coding implemented. Truck loading cycle time reduction of 20% attained. 3 manufacturing plants’ warehouses inventory optimized. $370 M inventory reduction.

o Package and Drum Line Batch Change-Over Time Reduction – LEAN Several plants Data analysis not completed, reassigned to another division.

o Vendor product lead-time reduction from 19 days +/- 10 days to 15 +/- 6 - LEAN 2 vendor warehouse inventory levels reset, re-visit action plans implemented. $120 M inventory reduction at company warehouses.

o Implemented Bulk Goods Loading Cycle Time Reduction - LEAN Kaizen Event. Redundant & unnecessary paperwork eliminated. Excessive truck travel reduced by cycle time analysis, improved scheduling

and loading dispatch. $1 MM capital investment avoidance.

o “Order to Fill” process value stream mapped, documented, improvements implemented.

o Customer “right the first time” order fulfillment increased from 84% to 92% Additional special freight & demurrage savings not quantified.


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Joint Venture 6 Sigma & LEAN Deployment & Implementation Mega-Project Provided Green Belt training & CI program management DMAIC, LEAN, DFSS deployed with projects applied as appropriate

o Price Change Management Process Cycle Time Reduction – LEAN 80 people-weeks down to 15 people-weeks to formulate, issue list prices &

pricing letters. Prices more closely reflecting cost & competitors’ pricing changes Neither AR nor revenue value quantified, no O&O reduction taken. Master Black Belt mentored project.

o Product Rework Reduction – DMAIC DOE 30% first pass yield Partial Factorial lab experiment underway, to be followed with full plant scale

validation. Capacity/revenue increase or COGS incentive calculations underway when

reassigned to another division. Black Belt project

o Filter House Run Time Extension – DMAIC Normalized data analysis showed which filter designs ran most economical

which was opposite to what plant engineers assumed. DOE formulated & run by plant engineers. Run times increased from 10 days average to14 days O&O reduction plus capacity increase being quantified. Black Belt project.

o Packaged Goods Batch Change-over Time Reduction - LEAN Drove down set-up time by

parallel flowing process steps, reducing waiting time on sampling & analysis for low risk product

changes. Warehouse also reorganized reducing storage & pick transit time. $400 M capital investment avoidance for 2nd packaging line. Black Belt project.

o Total Productive Maintenance and 5S Implementation – LEAN Benchmarking study for industry completed and turned over to operations

management

o Consigned Product Inventory Optimization – LEAN/DMAIC


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Company owned product at customer site. Inventory desired by customer too high for consumption & replenishment

time variation. $450M contract bargaining value Black Belt project.

Joint Venture 6 Sigma & LEAN Deployment & Implementation Mega-Project – continued…

o Maintenance Warehouse Inventory Optimization – LEAN/DMAIC 10,000 + parts in inventory, many not used for years. Green Belt mentored project, 40% done.

o Product Distribution System Inventory Optimization – LEAN/DMAIC 18 trans-load & packaging warehouses, 2 captive plants, 2 toll plants $9MM W.C. reduction underway. Green Belt mentored project.

o Bulk Finished Product Inventory Optimization – LEAN/DMAIC 20+ products $3.3MM W.C. cost reduction attained to date with no increase in outages. Black Belt mentored project

o Packaged Product Inventory Optimization - LEAN/DMAIC 40+ products. $530M W.C. cost reduction at 2 plant sites. Black Belt project

o Product Commercialization Process Implementation in R&D – LEANed DFSS LEAN principles applied to generate “must-deliverables” and “deliver-as-

appropriate” based in innovation risk level.

o Lab Services Cost Reduction – LEAN/DMAIC Redundant and low risk raw, semi-, & finished product over-sampling

reduced. $250M/year O&O reduction.

o Sales Services Value Improvement – DMAIC 200 +/- services offered with products Adds cost & complexity Paid by pricing or market share? Kano survey formulation, competitive pricing and cost analysis underway Green Belt mentored project, 25% completed when re-assignment occurred.


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Marketing & Sales Speed to Deal Cycle Time Reduction Mega- Project Formulate, implement strategy & mentor 2 Black Belts and 3 Green Belts in 4 channels of trade to reduce cycle times to benchmarks & entitlements while maintaining financial controls.

o Accelerate the Deal Approval Process - LEAN Best practices identified. Green Belt mentored project, 50% complete.

o B2B Wholesale Distributor Contract Formulation Process Cycle Time (CT) Reduction Create Ship-To’s - LEAN

50% time reduction in contracts & customer service group process. $55MM/year sales increase @ 1.5% gross margin. Green Belt mentored project.

o B2B Retail Distributor Contract Formulation Process CT Reduction Create Sold-To’s & Ship-To’s - LEAN

65% time reduction. $113MM/year sales increase @ 1.5% gross margin Green Belt mentored project.

o B2B Specialty Distributor Contract Formulation Process Create Sold-To’s – LEAN DFSS

Formulated a standardized best practice process from 3 pre-merger processes. Black Belt mentored project.

o Multi-Channel of Trade Non-Standard Contract Formulation Process CT Reduction - LEAN Best practices identified, documented & shared. Green Belt mentored project, 80% complete.

o Electronic Signature Platform - LEAN Implementation of existing system capability to meet legal needs. Black Belt mentored project, 50% complete.

o Sales Authorization Clearance Improvement Part 1 – DMAIC Customers were rejected by semi-automated system. Measurement system invented and implemented. Green Belt mentored project.

o Sales Authorization Clearance Improvement Part 2 – DMAIC Valid customer 1st time load capability increased from 1 to 2 sigma.


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Best practices identified, documented & shared. Green Belt mentored project.

o Self-Amortized Loan Approval Process CT Reduction – LEAN Measurement system formulated and implemented, data collection underway. Green Belt mentored project worked in conjunction with Texas A&M

graduate student team, 25% complete.

Cross Divisional Product Delivery Cost Reduction Mega Project - Formulated & implemented strategy.

Mentored 1 Master Black Belt, 3 Black Belts & 1 Green Belt

o Over-shipments, Wrong Product Shipments & Shipment Re-Directs Reduction – DMAIC Billing inaccuracies & re-work on 35% of shipments. Measurement system under evaluation. MBB mentored project, 25% complete

o Inaccurate Transportation Account Payable Invoices Reduction - DMAIC Mileage variances by truckers vs. contract cause wrong payments or re-work. Contracts updated with newer information and random audits implemented. $310 M/year savings attained Black Belt mentored project.

o Customer Inventory Management & Replenishment Short Load Optimization – DMAIC Provide cost basis for a win-win incentive system with customers. Fast inventory turns, full loads. Slow turns, partial loads with 1 truck to several clustered sites. $700 M/year O&O savings underway. Black Belt mentored project.

o Transportation & Dispatch C.T. Reduction – LEAN Reduce replenishment/delivery time. Developed & implemented new scheduling & dispatch process, changed to

local knowledge determined. Identified & implemented a coordinated load pick-up return option for select

deliveries. $220M/year O&O savings. Black Belt mentored project.

o Transportation Value-Chain Optimization – Business Improvement Product delivered by several means from several sources to several

destinations. Identified backup positions in case of supply disruption, with recurring timely

audit/analysis. Value not quantified. Green Belt mentored project.


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Retail Stores Contractor Service Charges Reduction – LEANo Service truck utilization improvement, 5 day Kaizen event.o Dispatch & scheduling process implemented.o $300+ M/year O&O reduction at 1st plant site, implementation at additional sites underway.o Black Belt project.

Contract Compliance Auditing & Oversight – DMAICo Logistics constraints, inability to respond timely to changing market conditions and the

limited number of sites able to be tested severely limited the efficiency and accuracy of a compliance auditing program.

o Defect was # of sites not monitored for potential contact violations.o $700 M annual O&O savings attained by use of an existing proxy data collection system.o Green Belt mentored project.

Document Records Management & Retention Compliance – DMAICo Records management and retention systems out of compliance, Legal risk heightened.o Improvements noticed with training implemented but measurement system analysis of

auditors underway to insure detection capability.o Contract image scanning process implemented with retrieval and search capability

$2.1MM/year O&O reductiono 50% complete on non-contract records retention compliance. o 1 Black Belt & several Green Belts mentored.

MSDS Formulation Cycle Time Reduction – LEANo 0.8% value-add time increased to 8% with 4 day Kaizen event.o Cycle time decreased from 4 months to10 business days plus queue time.o Black Belt and Master Black Belt mentored project.

Pricing Strategy for Joint Venture Product Terminals – DMAICo Defect was volume/margin lost at terminals where joint venture pulls significant volume and

they get a spot price compared to contract price.o $526M/year increased revenue.o Green Belt mentored project.

Effect of Special Event Advertising upon Sales Volume - DMAICo Identification of return by advertising type, medium, and amount during special events.o Green Belt mentored project, 25% complete.

IT Value Measurement System – DMAIC


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o Defect was any value claimed for an IT project reached outside a new standardized business case build.

o Green Belt mentored project.

Market Responsiveness Forecasting with Product Pricing Changes – DMAICo Defect was a daily pricing move that caused the competition to over-react as defined by a

goal price reaction. The incorrect response affected sales volume vs. target. o $425M/year revenue increase.o Leveraged to include a secondary product line, $100M additional revenue.o Black Belt mentored project.

Use of Services by Distributors at Unauthorized Sites - DMAICo Un-quantified reduction of risk, liability & cost. o Control & auditing process invented and implemented.o Green Belt mentored project.

Drill Rig Set-up Time Cycle Time Reduction – LEANo 15 days average eliminated because down-time between steps reduced.o Improved scheduling and communication. o Faster return on capital employed.o 5 day Kaizen event.o $410M estimated total contractor savings for 164 wells in 2006.o Revenue increase due to more wells completed not quantified.o Black Belt and Master Black Belt mentored project

Zero or Minimum Volume Customer Exposure/Risk Reduction - DMAICo Control system invented to keep small volume customers from pulling too much product and

then declaring bankruptcy.o Green Belt mentored project.

Margin Improvement at Retail Stores – DMAICo Defect was any product margin falling below a level set by product type & store location.o Project implemented with savings on track to attain $1.3MM in additional gross margin. o Black Belt mentored project.

Order Fulfillment Process Cycle Time Reduction – LEANo Pre-event process was competitive with other companies however improvement was

desireable. o Cycle time reduced by 10 days average, 5-day Kaizen event.o Market share increase by faster customer response, revenue increase estimated to be several

$10MM per year as spread across several plants.


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Measurement System Proxy as an Indicator for Total Sales - DMAICo Boundary identification for correlating credit card receipts to total sales volumes.o Green Belt mentored project.

Promotions Effectiveness on Credit Card Sales – DMAICo Return on spend as a function of geographical location during special events.o Green Belt mentored project, 25% complete..

Process for Setting Daily Allocations when Product Supply Disrupted - LEANo Identify decision basis and rationale for setting allocations by channels of trade and by

customers in such.o Project charter, stakeholder & gap analysis, team & resource identification, Gantt chart just

finished.o Black Belt project, 20% complete.

Plant Production Line Change Waste Reduction – DMAICo Product flywheel formalized, waste reduced.o Additional wasted product used to upgrade other products. o $90M/year COGS reduction in plant with an operating cost basis of $16MM.o Black Belt project.

Take or Pay Contract Volume Improvement – DMAICo Project established a monitor-to-action process to ensure there would not be a volume

deficiency cost at the end of the contract. At the end of the first year, the company was in a negative position of $450 M. It was projected to be a $1.85 MM deficiency cost at the end of the 3 year contract if no action were taken.

o Defect was any month that falls below the target volume.o Black Belt mentored project.

Railcar Inventory Optimization – DMAICo Identified the seasonality of railcar needs by different businesses and sites.o Control plan invented with implementation underway. o $600 M/year lease cost savings estimated.o 70% completed, DMA finished, I underway.o Black Belt mentored project

Process for Obtaining and Communicating Product Outage and Allocation Changes - LEANo Identified best internal practices with cross-functional team, 2 day Kaizen event.o Documented by process map and SOP’s, implemented.o Improved good will with stakeholder and customer base.o Black Belt project.

Plant Facilities Services Process Formulation – DFSSo Multi-goal project, provided assistance to:


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Find a way to improve customer satisfaction, increase speed of request fulfillment, reduce cost of the design process, show how DFSS works, reduce the number of changes post design, improve the cross-functional interaction between groups involved in the

process, uncover the true customer needs and balance needs versus wants, and define or clarify accountabilities within the workflow process.

o Design costs were 25% of the total delivered cost to the customer, which is perceived as high. Determine if the cost structure is correct for the type of projects primarily done.

o Project entered stage 3 (Optimize) of 4 stages and then organizational structure changed.

Customer & Sales Territory Value Analysis with Product Rationalization– DMAICo 2 part project.o Assisted with process invention to systematically remove products from business.o 350 products out of 1400 with < 15% gross margin under examination.o Cost accounting system under review.o Pricing increase vs. potential lost revenue incentive calculations underway when reassigned.o Black Belt project

Raw Materials Transportation Demurrage & Inventory Reduction – DMAICo Demand and replenishment time variation analysis underway.o Plant by plant implementation underway.o $2MM/year demurrage, premium freight, & storage fee savings underway across 6 plants.o Black Belt mentored project.

Value Chain Continuous Improvement Leveraging – Business Improvemento Project setup with co-supplier to reduce services, equipment supply and startup cycle times

Measurement system invented to identify cycle time causes.o Presentations made to Sales department to provide support to customers’ business &

continuous improvement projects.o Black & Green Belt mentored projects just starting.

Inaccurate Invoicing by Vendors at 3rd Party Formulation & Distribution Sites - DMAICo High billing variation as normalized to other components.o Measurement system formulated and implemented

Probable solution to the problem as consumptions were not measured.o Incentive not quantified.o Black Belt mentored project, 25% done.

Equipment Return Improvement - DMAICo Higher volume customers provided with free use of equipment at their sites.o Equipment not returned at end of contracts due to inadequate initial documentation and

follow-up. o Rectification processes to be documented and attached to contracts.


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o Value not quantified.o Black Belt project, 60% completed.

Customers’ Problem Quantification and Resolution - DMAICo Database of customer problems never examined, problems solved on a case-by-case basis. o Several college interns working analysis by channel of trade, goal is to Pareto causes then

identify means to prevent problems.o Black Belt project, just starting.

Operator Rounds Improvement - LEANo Low rounds completion rates – 0% to 80%

Higher for compliance, lower for general plant rounds.o 70% +/- TIMWOOD identified, eliminatedo Completion rates approaching 100% in pilot area, full rollout underway.o Green Belt mentored project

C3 Giveaway Reduction – DMAICo C3’s were being “lost” to fuel gas.o Pareto analyses focused efforts to certain operating areaso Targeted control increased PGP recovery from 67% to 81%, 3 M bbl/day worth $24 MM/yr.o Reason codes implemented to categorize additional root causes and provide improved

sustainability improvements.

Chemical Grade Feedstock Giveaway Reduction – DMAICo Propane concentration at low levels o The Splitter tower was making Polymer Grade Propylene (PGP - 99.5% propylene & 0.5%

propane. Because of margin changes the tower was re-tasked with making Chemical Grade Propylene (CGP - 93% propylene & up to 7% propane).

o CPG was running 0.9% propane mean with small variation so the opportunity was to increase it closer to 7%.

o Data analyses along with fishbone root cause identification led to the propane concentration increasing to over 5% by changing the process control scheme worth $4 MM/yr in increased CGP sales.


Pump Mean Time Between Failure & Repair Reduction - DMAICo Mean Time Between Repair went from 5 years to less than 4 years driving repair costs to

over $12 MM/yr. >2000 pumps involved.o Data analyses showed

2 out of 5 operating complexes were the culprits. Pump seal breakdowns were culprit in 1 area Bearing breakdowns were culprit in other area Additional reason codes implemented along with improved forensics

o Project on-hold until additional root cause data obtained although focused training of new operators underway.

o Green belt mentored project


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Railcar Inventory Optimization & Rework reduction – LEAN/DMAICo 35% of railcars continuously pulled from service, declared unsafe.o Leased inventory increased.o 90% returned as safe after re-evaluation.o Data analyses underway to determine Pareto of declarations.o Green Belt mentored project.

5S Deployment - LEANo Office and 5 major operations areas within a 700 FTE and 4000 contract employee site.o Deployment training completed for front line supervisors.

Audit tools formulated.o Each “S” made into a project, run on 24/7 shifts.o Numerous Green Belt Projects underway

Octane & RVP Giveaway Reduction - DMAICo Various grades of fuel used higher value components to insure octane spec. attainedo Several blender inputs that caused overshoot identified.

Various models wrong for various blender types.o Models & Communications processes updated, controls set in place = $8 MM/yr octane

component savings.o RVP giveaway project still underway.o Black Belt mentored project.

Non Validated Contractor Access to Restricted Site – LEAN o 15% of unauthorized contract employees were gaining access to new employee training.o Process clarified & mapped with HR, TAR, Project, HSSE, Maintenance organizations.o Initial post-project unauthorized access below 1%, monitoring for sustainment continuing.o Green Belt mentored project

Shift Communications Improvement – LEANo History accounting & reporting incomplete leading to additional Leadership Team work to

identify & implement corrective actions.o Proactive instructions often incomplete or untimely resulting in sub-optimization of

operations.o Core team surveyed for issue identification, Voice of the Customer obtained to identify

quantifiable deliverables of processes, processes value-stream mapped, inefficiencies identified. Numerous improvements being prototyped along with a measurement system.

Distilled HMD Top Cut Giveaway Reduction – DMAICo The cutpoint at a pipestill is off spec 67% of the time resulting in a loss of $7.3MM/year.o Goal to be at +/- 5 F of target.o Measurement system analysis shows test method only good to +/- 9 F.o New test method investigation underway.


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Distilled LMD Freeze Point Giveaway Reduction - DMAICo The cutpoint at the pipestill is off spec 56% of the time when the HVN target is over 300 F

resulting in a potential loss of $5.5MM/yr.o Goal is to be at +/- 5 F of target. Measurement system good to +/- 1 F.o Sample grab to analyses time investigation underway as part of regression analyses to

determine key process input variables. o Regression analyses beginning, to include effect of crude types, DGO volume in column and

column pressure differentials.o Green Belt mentored project.

Furnace Energy Consumption Reduction & O2 Optimization – DMAICo Initial process capabilities identified for several furnaces.o O2 running 2–12%. Incentive of $500M/year per furnace average in energy saving to attain

2–4%.o Root causes identified: numerous leaks, inadequate board attention & instructions, lack of

basic instrumentation & maintenance.o Low to no investment improvements proposed. Awaiting decision.o Green Belt mentored project.

Construction Projects Team Roles and Responsibility – LEANo As-is process mapped, deficiencies found then re-mapped to clarify RACI.o Cycle time measurement system set in place for future continuous improvement projects. o Green Belt mentored project

Construction Project Forecasting Improvement (Controls) – LEAN/DMAICo Lack of consistant controls prevents teams & managers from understanding perforamce

against plan resulting in high variability in forecasting final cost & schedule/timing.o Inadequate time-stamping measurement system in place to identify root causes, new mea-

surement system implemented. o Process mapping underway for both cost controlling and schedule controlling projects.o Green Belt mentored project.

Construction Projects Communications Improvement – LEAN o Confusion exists as to which contractor, Company and industry standards, policies and pro-

cedures to follow during different work activities.o Customer segment surveys completed and recommendated changes being prioritized by im-

pact and effort. Additional surveys forthcoming for continuous improvement.o Green Belt mentored project


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Construction Projects Forward Planning – LEANo Front End Loading (Project Appraise & Select Phase) taking too long although clean mea-

surement system not in place to compare against benchmarks & entitlements.o Work flow being separated into schedule driven and cost driven processes to better clarify

which steps are needed when. o Green Belt mentored project.

DDU Reactor Catalyst Change Cycle Time Reduction – LEANo 2 day semi-Kaizen Event, improvements awaited actual process activity.o Baseline process took 28 days from oil off to oil on.o SMED tools & process approach used.o Several process steps changed from serial to parallel path flow.o New process took 14 days to complete, 50% time reduction, $3.5 MM saved.o Green Belt mentored project.

Contract Labor Invoice Payment Cycle Time Reduction - LEANo Invoices submitted for approval ran 3 months average +/- 3 months after work week time

sheets submitted.o Impact was chaos & confusion concerning cost center accounting resulting in some blown

budgets.o Value stream mapped, process cleaned and invoice cycle time result was a 1 week average

+/- 1 week lag after time sheet submitted after project completed & audited.o Green Belt mentored project

Fueling Remote Sited Equipment – LEANo Tremendous amount of time both in the Truck Garage and by the Procurement Department

used for tracking dispensed fuel.o The Team - fuel truck drivers, administration & Procurement personnel – identified which

records were value adding and eliminated the rest.o Through focusing on the mandatory information, the overall cycle time for processing

fueling records was reduced by 45%.o Green Belt mentored project

Asphalt Rework Reduction - Viscosity Variation Reduction – DMAICo Product out of pipestill highly variableo Regression analyses indicates process control models are in good shape for other streams but

missing asphalt viscosity feedback loop.o Viscosity feedback instrumentation installation underway, project continuing. o Green Belt mentored project

Outside Battery Limit Piping Tie-in Cycle Time Reduction – LEAN


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o Typical tie-in time & variation not well measure - measurement system installed.o No clear process – process mapped with roles & responsibilities defined.

Communications breakdowns between Construction & Operations.o TIMWOOD eliminations underway while obtaining additional data. o Learnings to be applied to inside battery limit piping tie-ins.o Green Belt mentored project.

Contractor Variance Reduction – LEANo 65 contractors average continuously given safety variances to work on site being their safety

record not to standardso Root cause identified as insufficient time for procurement to go to market to find contractors

with good records.o Procurement single point of contact identified to timestamp contractor work requests o Process map formulated to standardize when to go to market vs. utilize existing contractor.o Variances dropped to 15 average, additional improvements implementation underway.o Green Belt mentored project

LDAR Repair Cycle Time Reduction (5 & 15 days) – LEAN/DMAICo Project broken into 2 sub-projects:

Process has numerous re-repair factories. Process has long cycle times.

o Value-stream mapping underway to better understand where queing & backlogs occuro Pareto shows where major repair types (valve, seal, flange leaks) by area & function are

being reworkedo Data analyses underwayo Green Belt mentored project.

High Volatility Naphtha Inventory Optimization – LEAN/DMAICo Inventory had high variability and was not tied to risk and ramifications of stock – outo Frequency & length of outages, replenishment time variation, consumption variation

gathered along with a decision of allowable stockout risk.o Inventory reduced by $100 M.o Green Belt mentored project.

H2S Personnel Exposure Reduction – DMAICo Data being obtained by area, by equipment, by job performed.o Green Belt mentored project.

Turn Around Control of Work Permitting Cycle Time Reduction – LEANo Oil out to oil in turnaround time running about 40% higher than industry standard.o Project scoped into 2 parts: Permitting, Blinding & Blanking.


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o Benchmarking completed to identify best practices while maintaining or improving safety.o Semi-Kaizen Event completed to change processes:

Increased number of simple/low risk permits alloted per operator. Blanking at battery limits instead of at every equipment piece. Visual Factory & flow implemented for permit issuing & updating.

o Awaiting next turn-around to evaluate results.o Green Belt mentored project

Supplier Management Improvement – LEAN/DMAICo Brainstorming sessions held with numerous key suppliers to identify cost savings projects.o Numerous value chain optimization opportunities worth $8.6 MM/yr. O&O reduction.o Boston Square used to rank order projects, several now underway.o On-going opportunity identification sessions set in place.o Green Belt mentored program.

Maintenance Work Authorization, Planning, Scheduling & Execution Process Cycle Time Reductions - LEANo Process mapping underway to better understand handoffs, queues, and flowo 3+ potential Kaizen Events being formulatedo 3 Green Belts being mentored

Projects Construction Completion Information Transfer to Operations/Maintenance Quality & Timeliness Improvement – DMAIC/LEANo Voice of the Customer Critical to Satisfaction identification underwayo Process mapping underway

Provided mentoring & coaching on the following 50+ projects related to manager yellow belt training:

Functional Area Project Name

HR Work processes identificationHSE Required training optimizationOperations & Maintenance Pump Repair Machine Shop FlowOperations & Maintenance Alarm Management & Alarm FrequencyHSE Incident Investigation - reduce time Operations & Maintenance Pump reliability improvementOperations & Maintenance Machine Tooling Setup Cycle Time ReductionProjects TAR Efficiency ImprovementProjects Sulfur Recovery Project Cycle Time ReductionClean Energy Clean Energy Reliability - Generator Brush replacementCommercial Labor Distribution/Allocation for Cost MappingProjects PSME Updating


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Projects Job Notes improvementProjects Contract Engineers & Contract Management improved utilizationHR Labor Relations DocumentationClean Energy Building & Warehouse Space Allocation & Capacity ImprovementProjects Improving Pipe Fab QualityProjects Small Projects Work ProcessProjects Enhancing Quality of CapEx PortfolioProjects Contractor Alliance - Competitive Estimates & SchedulesHSE Environmental Regulatilons in OperationsProjects Change ManagementProjects Operations Supervisor Development ProgramHSE Process Safety - Near Miss ReportingProjects Improve Project EstimatesCommercial Improve Production Plan AccuracyCommercial Reduce Time to Approve Projects (stage/gate)Commercial Place Order and get Materials FasterProjects Scheduling Updating improvementProjects Bring in Additional Lab external Work & $ by freeing FTE timeProjects Improve Field Work Scoping in TAR'sHR Manage Training Formulation Requests & Approval ProcessHSE HSSE Policy/Procedure Knowledge Sharing in TAR'sHSE Employee Risk Reduction when traveling from Parking lot to

control room

Area Project Name Commercial Inaccurate invoicing of IT services to WBU cost centersCommercial Calculate mass balances more efficiently at end of monthFunctional Projects Cycle Time Reduction for Select Phase of CVP ProcessProjects Cost control of projectsOperations & Maintenance Streamline the amount and location of materialsOperations & Maintenance Get maintenance crafts out faster at night when needed by

operationsProjects Equipment installations & repairs material & workmanship defects Projects WRMP Policies do not match Refinery Policies which creates extra

work and confusion.HR Underperforming probationary employees are kept too long

resulting in poor morale and increased costs.Commercial Streamline information flow in procurement processesCommercial KPI Reports Late & Incomplete X% of Time Commercial WBU inventory levels are too high by 50Mbbl(?) resulting in

excessive W.C. and lower cash flow.Projects Welding rental equipment is not tracked which results in lost

equipment.Projects Pump repair delays and slow response time leads to higher risk of

plant shutdownsHSE Fire engine response time after hours exceeds a 3 - 6 minute spec.


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which endangers livesOperations & Maintenance SOU Reliability Improvement thru 2012Operations & Maintenance Pump LDAR Failures @ FCUOperations & Maintenance 50% Inaccurate information in ESU Guidelines Operations & Maintenance Weekly Maintenance Schedule does not get daily work doneCommercial Embedding Procurement Savings into UnitCommercial Uncontrolled Fuel Usage in RefineryOperations & Maintenance Quality of NIS Guidelines is too low throughout refineryClean Energy Too many nuisance alarms

B Dallum CI Accomplishments & Projects- hea

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